...AFX 5860 Assignment International Studies in Banking & Finance Visit 1: UN Food and Agricultural Organization [pic] Place: Rome Italy Brief Introduction: The Food and Agriculture Organizaiton of the United Nations (FAO) is a special agency of the United Nations that leads international efforts to defeat hunger. FAO acts as a forum where all nations meet equally to negotiate agreements and debate policy, it also a source of knowledge and information which help developed and developing countries in transition modernize and improve agriculture, forestry and fisheries practices and ensure good nutrition for all (FAO, 2010). Rome Italy is head quarters. It has 191 member states as well as Europe Union and the Faroe Islands, which are associated members (FAO, 2010). FAO is composed of 8 different departments, the meeting is conducted by finance division. Relevant Key Points & Issues The fist half of the presentation briefly introduced the FAO’s role as UN’s agency, its structure, business environment and management. FAO’s mandate is contribute to the growth of world economy and to increase the level of nutrition, with the mission of helping build a food secure world. In order to achieve such mandates, they involves 4 activities which are putting information within reach, sharing policy expertise, providing a meeting place for nations and bringing knowledge to the field. It used result- based management which is an approach that integrates strategy, people,...
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...1 Consumer banking: 6 3. Liquidity Risk: 7 3.1 Measuring Liquidity Risk –SCB 7 3.2 Measuring Credit Risk Exposure 10 3.3 Market Rate Risk 11 3.4 Value at Risk (VaR) 12 4. CAMEL RATING SYSTEM 13 1. Executive Summary International Banking can be defined as banking transactions crossing national boundaries. The activities involves like international lending; claims of domestic bank offices on foreign residents, claims of foreign bank offices on local residents, claims of domestic bank offices on domestic residents in foreign currency are the major activities involved in International Banking. The evolution of banking history dates back to 2000 BC in Assyria and Babylonia; while the modern banking systems originated in Renaissance Italy. The major incentive for the growth of international banking was migration of domestic customers who were MNE’s growing foreign activities and the impacts of regulatory differences. The report is comprised of Liquidity risks, market risks, credit risks of Standard Chartered Bank Plc. The company also demonstrates the firm efficiency of the firm using CAMEL RATING SCALE. The overview of the analysis states that the firm is operating proficiently under the guidelines of BASEL. Introduction According to Lewis & Davis (1987, p. 219), international banking is a denotation of cross-border and cross currency facets of banking business. They classify international banking into two main activities; traditional foreign banking and euro currency...
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...predicament that extended to grave proportions. Currently, at least 16 European countries are in debt. Among the countries most affected are Greece, Spain, Ireland, and Portugal. All of the countries in the Eurozone share a monetary currency called the Euro Dollar and have closely connected economies. Implications that have come about as a result of the Euro debt crisis may include Economic changes in Europe, Government bailouts, Stress to banking systems, and further economic deterioration. Role of the imf The IMF could play a very useful role in any comprehensive solution by providing some of the firepower to reassure the markets, and, more importantly, by supplying discipline to the execution of the rescue plans through enforcing conditionality on loan disbursements. The staff of the International Monetary Fund said in its latest assessment that the crisis in the euro area has reached a critical stage, and urged the 17 countries of the Eurozone to remain strongly committed to a vigorous and complete monetary union, including a unified banking system and more fiscal integration. The IMF has offered solutions for short term support to the Eurozone debt crisis with actions such as: * Implementing fiscal consolidation decisively and credibly where market pressure is high, but more gradually elsewhere to help support demand in the region. * Committing to a more accommodative monetary policy for an extended period. * Recapitalizing the weak banks...
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...Product Cost For financial accounting purposes, product costs include all costs involved in acquiring or making a product. In the case of manufactured goods, these costs consist of direct materials, direct labor, and manufacturing overhead. Product costs “attach” to units of product as the goods are purchased or manufactured, and they remain attached as the goods go into inventory awaiting sale. Product costs are initially assigned to an inventory account on the balance sheet. When the goods are sold, the costs are released from inventory as expenses (typically called cost of goods sold) and matched against sales revenue. Since product costs are initially assigned to inventories, they are also known as inventoriable costs. Product costs are not necessarily treated as expenses in the period in which they are incurred. Rather, as explained above, they are treated as expenses in the period in which the related products are sold. This means that a product cost such as direct materials or direct labor might be incurred during one period but not recorded as an expense until a following period when the completed product is sold. Period Cost Period costs are all the costs that are not product costs. For example, sales commissions and the rental costs of administrative offices are period costs. Period costs are not included as part of the cost of either purchased or manufactured goods; instead, period costs are expensed on the income statement in the period in which they are incurred...
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...In this week’s lecture, we looked at the credit risk management. Credit risk is defined as the potential for loss due to a counterparty failing to meet its financial obligations in accordance with agreed terms. The sources of credit risk for the bank are summarized as direct lending, traditional off-balance sheet business, investment and capital market operations, etc. For the commercial banks the major risk is the credit risk which accounted by 50%-60% of total risk, far more compared to market risk and operational risk. Thus the credit risk management is quite important. The managed way is measured on the nature of counterparty (retail credit, corporate credit and business banking credit) they are measured differently from each other. EG:The retail business has lots of transactions but relatively small amounts related to individuals, which adopt a proprietary scoring model. It is considered the factors as appropriate weights, historical data on defaulted and good loans, information provided by the credit applicant etc. Then, the SMEs credit model used to predict the probability of default of bankruptcy. The Z-score is derived from 5 financial ratios using 8 inputs from the financial statements; a low Z-score, the higher risks of bankruptcy. Third, for the large companies, the credit rating is provided involve detailed analysis. The rating agency demonstrates the S&P’s investment grade ratings as AAA,AA,A; BBB,BB.B…from strongest capacity to meet financial obligation...
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...in evolution of international banking in 16th Century as this family was eager to trade internationally. Fuggers have gained control on the economy of the different countries first locally then globally through trade and then gain control in mining internationally. When money supply in the Europe has expanded, Fuggers have gained control of the Silver, Gold, Copper production as a security of cash loans. Fuggers have prepared Letter of credit in order to provide liquidity to their customers who are dealing with several currencies and incompetent market for currency exchange and become gradually rich with every following peer. They had gained control of the central Europe’s mines through their loaning to Hapsburgs. Fugger bankers not limit their activities to lend in exchange of gold, silver & other mines, and currency exchange but as one of the largest firms they lent to government as well just because it is profitable. They have brought the concept of international banking as they borrow different mines from a country where these mines are cheaper and pay royalty to them and trade them in the countries where it is more worthful and where the demand of mines was high. Fuggers had managed their liquidity more efficiently as they were the largest bankers and lenders of cash this international banking management makes them legend of their own times and play an important role in evolution of international banking. References (Kohn M., 1999), Merchant Banking in the Medieval...
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...You are responsible for costing foreign exchange transactions in a local firm. You found following foreign exchange (FX) rate quotations. Published by a local bank in Australia Exchange rate | Bid | Ask | AUD/USD | 1.2324 | 1.2632 | AUD/GBP | 2.0084 | 2.0846 | AUD/EUR | 1.7259 | 1.7921 | Published by a local branch of a foreign bank in Australia Exchange rate | Bid | Ask | BND/AUD | 1.1998 | 1.1310 | JPY/AUD | 77.2000 | 74.1300 | You are required to estimate * bid and ask spreads for each currency unit * AUD value of USD100,000 receipts from a US customer * AUD value of GBP723,000 payments * the total amount of EUR that can be purchased using AUD 2, 000,000 to settle a import bill. * AUD value of BND450,234 receipts from a customer in Brunei * AUD amount to settle JPY 2.5 million on import transaction. Use FX quotations given below to estimate AUD value of * MYR 975,250 receipt from a Malaysian customer * SEK2,500,000 payment to a foreign suppler FX quotes published by a bank in Singapore. Exchange rate | Bid rate | Ask rate | MYR/ USD | 3.5800 | 3.5850 | USD/SEK | 0.1175 | 0.1200 | Your company has identified following future cash flow positions in foreign currencies. * The US customer has promised to settle a USD750,000 worth export transaction in a 90-day period. * The company needs EUR1.5 million in three months to settle import transaction with a suppler in a European country. The local bank has published...
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...Executive Summary Speculation with Easy Forex For trading the currency in the Easy-forex, the trader should focus on the spot market (daily trading). The price of currency in spot market can change over time. This market has a lot of currencies which can trade but it is difficult to trade all currencies. So we focus to trade on some pair currencies such as USD/GBP, EUR/AUD, JPY/USD, AUD/USD and USD/EUR In our position of trading currency in Easy forex, we have to use financial instruments to analysis and identify which currency that we will get the profit. Furthermore it will have management tools to help us to manage the risk such as stop loss, take profit and limit order which we can set the limit of lost and profit that we can accept. We 30 completed transactions and the total balance in our account is AUD 46,097.96 Overall Strategy In general, the overall strategy is the news that will be announced every day. In our opinion the economic news from many the foreign exchange rate websites are the main drivers of market developments such as interest rate, Consumer Price Index, unemployment rate and inflation etc.Those factors will be the big impact to the foreign exchange market in the world economy. The technical analysis is another strategy that we usually use to predict the trend of currency from the historical statistic information in trading process. They are including the chart and technical indicators which can help the investors to identify the future trend...
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...PRODUCT WRITE-UP PLAN NAME: PLAN CODE: LAUNCH DATE: Great Treasure Wonder (EDM-GTW) 0405 2 May 2012 Offer Period: 2 months, from 2 May 2012 to 2 July 2012 (based on proposal submission date and both dates inclusive), or until sales amount reach RM100 million, whichever occurs first. PLAN DESCRIPTIONS 1. This is a limited pay Endowment plan with participation in profits. st 2. Survival Benefits are payable every 6 months starting from the end of the 1 policy year. 3. Term of Assurance and Premium Payment Term offered. Term of Assurance 20 years 25 years Premium Payment Term 5 years PLAN BENEFITS 1. Death Benefit Upon death of the Life Assured, the Company will pay (a) sum assured at time of death; (b) accumulated survival benefit (if any); (c) any cash bonus (including accumulated cash bonus, if any); and (d) terminal bonus on death (if any); in one lump sum. In the event of death of the Life Assured occurring before age 5 years next birthday, a child lien as follows shall apply: Age Next Birthday on Policy Sum Assured at Time of Death Anniversary Preceding Death 1 20% of sum assured 2 40% of sum assured 3 60% of sum assured 4 80% of sum assured Note: Sum assured is defined as basic sum assured + additional sum assured (if any) 2. Additional Sum Assured An additional sum assured will be payable upon occurrence of the following event: (a) Death of the Life Assured; or (b) TPD of the Life Assured prior to the age of 65 years next birthday; or (c) Maturity of the policy;...
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...Banking services in Qatar Banks in Qatar are extremely well financed, secure and well regulated, with the Qatari authorities supporting domestic banks, where necessary, with direct investments. In Qatar you may find several branches of both national and international banks. Large companies, governmental departments also have banks located on site. Banking services are quite modern and some bank provide drives in services, other offer mobile banking, cash deposit machines and many facilities to their customers Retail banking services available in Qatar include branch banking, online and telephone banking. The use of credit, debit and cash cards is widespread, and cash is a popular form of payment for everyday transactions. Bank statements and official banking correspondence can be provided either in Arabic or English, and many of the banks in Qatar provide counter services in both languages. The main types of bank account in Qatar There are three main types of accounts used for everyday banking and savings in Qatar: * Current account – typically used for everyday banking. Current accounts generally have no monthly fees so long as a minimum balance is maintained (around 3,000 QAR) and many offer unlimited transactions. Interest rates paid on current accounts are generally low * Savings account – typically pays a higher rate of interest than current accounts, but access to funds may be limited, and savings accounts may allow only a certain number of fee-free withdrawals...
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...Internship Report: HRMP in Standard Chartered Bank Abstract According to the universalistic perspective, organizations from different sectors, across industries, and through different time periods should use a series of select human resource management practices (HRMP). The main principle of this paper is to investgate whether i there is any relationship between HRMPs and organizational performance, regarding Standard Chartered Bank in Bangladesh. This study aims to investigate the relationship of training, employee participation, and selection with perceived organiz ational performance in the context of Standard Chartered Bank in Bangladesh. This study is co -relational in nature and it will examine the correlation among these variables. A single set of sample will be considered for this study and that will be the employees of Standard Chartered Bank. A set of structured questionnaire will be distributed among 200 respondents. Regression analysis will be conducted for the purpose of data analysis. -1- Internship Report: HRMP in Standard Chartered Bank Origin of the Report The BBA internship program is a mandatory requirement for the students who are graduating from the BBA program under the School of Business of North South University, Bangladesh. In the internship program, I was attached to a host organization named µStandard Chartered Bank¶ for 12 weeks. During this period I learned how the host organization works with the help of the internal supervisor....
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...ICB Independent Commission on Banking Final Report Recommendations September 2011 ICB Independent Commission on Banking Final Report Recommendations September 2011 Official versions of this document are printed on 100% recycled paper. When you have finished with it please recycle it again. If using an electronic version of the document, please consider the environment and only print the pages which you need and recycle them when you have finished. © Crown copyright 2011 You may re-use this information (excluding logos) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-governmentlicence/ or e-mail: psi@nationalarchives.gsi.gov.uk. Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. Any enquiries regarding this publication should be sent to: Independent Commission on Banking Victoria House Southampton Row London WC1B 4AD This document is also available from our website at http://bankingcommission.independent.gov.uk/ ISBN 978-1-845-32-829-0 Produced by the Domarn Group, London. Final Report Contents Contents ...................................................................................................................... 1 List of acronyms .........................................................................................
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... In Canada recession was less severe and they face no banking failure due to the size and diversification in their large institution has maintained their stability. New Entrant was limited by Canadian government and I exchange chartered bank with provide them financial stability, in Canada focuses on banking sector that’s why brokers dealers and security market remain much at smaller .The banking system of branch was oliogiopolisty that imply the system which has limited supply of banking services and cost as compared to their competitors . In our previous work (Bordo et al., 1994) we analyzed that the Canadian banking is not categorized in higher cost as compared to US. The banking of Canada same returns on equity and largely used MMMFSs After 1987 they became a vital part of Canada banking, at that time government had given them permission to create MMMFs and half of total MMMFs are kept at bank which means that they are within the banking system. According to (Byung kyong & Niamh Sheridan,2012) Canada’s three large bank weighted average is two an half time smaller than Australia’s four major banks however non performing rate of housing loans in Australia and Canada are almost same in recent years. The mortgages in Canada are provided by Canada mortgage and Housing Corporation own by Government are assigned at weight of zero risk, therefore the lowest risk of residential mortgages of four large Canadian banking is almost 70% in comparison with 40% of major Australian...
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...Basel I DEFINITION OF 'BASEL I' A set of international banking regulations put forth by the Basel Committee on Bank Supervision, which set out the minimum capital requirements of financial institutions with the goal of minimizing credit risk. Banks that operate internationally are required to maintain a minimum amount (8%) of capital based on a percent of risk-weighted assets. Basel II is the second of the Basel Accords, (now extended and partially superseded[clarification needed] by Basel III), which are recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision. BREAKING DOWN 'Basel I' The first accord was the Basel I. It was issued in 1988 and focused mainly on credit risk by creating a bank asset classification system. This classification system grouped a bank's assets into five risk categories: 0% - cash, central bank and government debt and any OECD government debt 0%, 10%, 20% or 50% - public sector debt 20% - development bank debt, OECD bank debt, OECD securities firm debt, non-OECD bank debt (under one year maturity) and non-OECD public sector debt, cash in collection 50% - residential mortgages 100% - private sector debt, non-OECD bank debt (maturity over a year), real estate, plant and equipment, capital instruments issued at other banks The bank must maintain capital (Tier 1 and Tier 2) equal to at least 8% of its risk-weighted assets. For example, if a bank has risk-weighted assets of $100 million, it is required to maintain...
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...FINANCIAL SERVICES Optimizing banking operating models From strategy to implementation September 2012 kpmg.com KPMG INTERNATIONAL Contents Executive summary The challenges facing the banking sector Regulations and regulators Economic environment Changing customers The march of technology 3 3 3 1 2 2 How will these changes affect the universal banking operating model? The end of universal banking Disintegration of the value chain Cost efficiency is key in developing new operating models New IT architectures are essential 6 6 5 4 4 What banks need to do Seizing this once-in-a-life-time transformation opportunity Developing an innovative operating model to overcome loss of scale and cost issues Implementing long-term sustainable cost reduction measures Implementing an iterative and collaborative approach to a complex, multi-faceted problem 10 11 9 8 8 Making it to the finish line 13 © 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved. Optimizing banking operating models | 1 Executive summary A s the world emerges from what has been described as the greatest crisis in the history of finance capitalism, banks must adapt to radical new regulations, technologies, customer expectations and economic environments. The current universal bank operating model...
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